IDEAS home Printed from https://ideas.repec.org/a/eee/enepol/v91y2016icp148-160.html
   My bibliography  Save this article

A study on the effects of the CAFE standard on consumers

Author

Listed:
  • Jun, Seung-Pyo
  • Yoo, Hyoung Sun
  • Kim, Ji-Hui

Abstract

In this paper, we analyzed how the CAFE standard has affected improvements in the fuel economy of vehicles, as examined in other preceding studies, but in addition, we also analyzed how these standards have affected the level of consumer interest in fuel economy. Our goal was to determine what effects the government intervention has had on consumers, and whether such intervention ought to be continued. The results showed that not only has the CAFE standard had a direct and significant impact on improving fuel economy and increasing the market share of fuel-efficient vehicles, it has also boosted the development of technologies for enhancing fuel economy and raised consumer interest in fuel economy, thus indirectly contributing to overcoming market failure. The significance of this study is that we used publically available observed data and analyzed the recent impact of the CAFE standard specifically with a focus on the behavior and strategies exhibited by consumers and automakers. Another significance of this study is that it extends our purview to examine the effects that the CAFE standard has had in other countries (Korea).

Suggested Citation

  • Jun, Seung-Pyo & Yoo, Hyoung Sun & Kim, Ji-Hui, 2016. "A study on the effects of the CAFE standard on consumers," Energy Policy, Elsevier, vol. 91(C), pages 148-160.
    • Handle: RePEc:eee:enepol:v:91:y:2016:i:c:p:148-160
    DOI: 10.1016/j.enpol.2016.01.004
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0301421516300040
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.enpol.2016.01.004?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Steven Berry & Samuel Kortum & Ariel Pakes, 1996. "Environmental Change and Hedonic Cost Functions for Automobiles," NBER Working Papers 5746, National Bureau of Economic Research, Inc.
    2. Wadud, Zia, 2014. "New vehicle fuel economy in the UK: Impact of the recession and recent policies," Energy Policy, Elsevier, vol. 74(C), pages 215-223.
    3. Hyunyoung Choi & Hal Varian, 2012. "Predicting the Present with Google Trends," The Economic Record, The Economic Society of Australia, vol. 88(s1), pages 2-9, June.
    4. Granger, C. W. J., 1988. "Some recent development in a concept of causality," Journal of Econometrics, Elsevier, vol. 39(1-2), pages 199-211.
    5. Jun, Seung-Pyo & Park, Do-Hyung & Yeom, Jaeho, 2014. "The possibility of using search traffic information to explore consumer product attitudes and forecast consumer preference," Technological Forecasting and Social Change, Elsevier, vol. 86(C), pages 237-253.
    6. Jun, Seung-Pyo & Yeom, Jaeho & Son, Jong-Ku, 2014. "A study of the method using search traffic to analyze new technology adoption," Technological Forecasting and Social Change, Elsevier, vol. 81(C), pages 82-95.
    7. Shiau, Ching-Shin Norman & Michalek, Jeremy J. & Hendrickson, Chris T., 2009. "A structural analysis of vehicle design responses to Corporate Average Fuel Economy policy," Transportation Research Part A: Policy and Practice, Elsevier, vol. 43(9-10), pages 814-828, November.
    8. Carolyn Fischer & Winston Harrington & Ian W.H. Parry, 2007. "Should Automobile Fuel Economy Standards be Tightened?," The Energy Journal, International Association for Energy Economics, vol. 0(Number 4), pages 1-30.
    9. Kirby, Eric G, 1995. "An evaluation of the effectiveness of US CAFE policy," Energy Policy, Elsevier, vol. 23(2), pages 107-109, February.
    10. Jeremy Ginsberg & Matthew H. Mohebbi & Rajan S. Patel & Lynnette Brammer & Mark S. Smolinski & Larry Brilliant, 2009. "Detecting influenza epidemics using search engine query data," Nature, Nature, vol. 457(7232), pages 1012-1014, February.
    11. Turrentine, Thomas S. & Kurani, Kenneth S., 2007. "Car buyers and fuel economy?," Energy Policy, Elsevier, vol. 35(2), pages 1213-1223, February.
    12. Kemp, René & Pontoglio, Serena, 2011. "The innovation effects of environmental policy instruments — A typical case of the blind men and the elephant?," Ecological Economics, Elsevier, vol. 72(C), pages 28-36.
    13. Seung-Pyo Jun, 2012. "An empirical study of users’ hype cycle based on search traffic: the case study on hybrid cars," Scientometrics, Springer;Akadémiai Kiadó, vol. 91(1), pages 81-99, April.
    14. Plotkin, Steven E., 2009. "Examining fuel economy and carbon standards for light vehicles," Energy Policy, Elsevier, vol. 37(10), pages 3843-3853, October.
    15. Jun, Seung-Pyo, 2012. "A comparative study of hype cycles among actors within the socio-technical system: With a focus on the case study of hybrid cars," Technological Forecasting and Social Change, Elsevier, vol. 79(8), pages 1413-1430.
    16. Turrentine, Tom & Kurani, Kenneth S, 2007. "Car buyers and fuel economy?," Institute of Transportation Studies, Working Paper Series qt56x845v4, Institute of Transportation Studies, UC Davis.
    17. Bezdek, Roger H. & Wendling, Robert M., 2005. "Potential long-term impacts of changes in US vehicle fuel efficiency standards," Energy Policy, Elsevier, vol. 33(3), pages 407-419, February.
    18. David Haugh & Annabelle Mourougane & Olivier Chatal, 2010. "The Automobile Industry in and Beyond the Crisis," OECD Economics Department Working Papers 745, OECD Publishing.
    19. MacKinnon, James G, 1996. "Numerical Distribution Functions for Unit Root and Cointegration Tests," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 11(6), pages 601-618, Nov.-Dec..
    20. David Popp, 2010. "Exploring Links Between Innovation and Diffusion: Adoption of NO X Control Technologies at US Coal-fired Power Plants," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 45(3), pages 319-352, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Jun, Seung-Pyo & Lee, Jae-Seong & Lee, Juyeon, 2020. "Method of improving the performance of public-private innovation networks by linking heterogeneous DBs: Prediction using ensemble and PPDM models," Technological Forecasting and Social Change, Elsevier, vol. 161(C).
    2. Jun, Seung-Pyo & Yoo, Hyoung Sun & Lee, Jae-Seong, 2021. "The impact of the pandemic declaration on public awareness and behavior: Focusing on COVID-19 google searches," Technological Forecasting and Social Change, Elsevier, vol. 166(C).
    3. Wang, Sinan & Chen, Kangda & Zhao, Fuquan & Hao, Han, 2019. "Technology pathways for complying with Corporate Average Fuel Consumption regulations up to 2030: A case study of China," Applied Energy, Elsevier, vol. 241(C), pages 257-277.
    4. Liangui Peng & Ying Li & Hui Yu, 2021. "Effects of Dual Credit Policy and Consumer Preferences on Production Decisions in Automobile Supply Chain," Sustainability, MDPI, vol. 13(11), pages 1-19, May.
    5. Hyoung Sun Yoo & Chul Lee & Seung-Pyo Jun, 2018. "The Characteristics of SMEs Preferring Cooperative Research and Development Support from the Government: The Case of Korea," Sustainability, MDPI, vol. 10(9), pages 1-18, August.
    6. Li, Jizi & Ku, Yaoyao & Yu, Yue & Liu, Chunling & Zhou, Yuping, 2020. "Optimizing production of new energy vehicles with across-chain cooperation under China’s dual credit policy," Energy, Elsevier, vol. 194(C).
    7. Jolana Stejskalova, 2023. "We investigated the link between stock returns of automobile companies, Fama French factors, and behavioral attention, represented by demand for a selected car brand belonging to an automobile company," Journal of Economics / Ekonomicky casopis, Institute of Economic Research, Slovak Academy of Sciences, vol. 71(3), pages 202-221, March.
    8. Jun, Seung-Pyo & Yoo, Hyoung Sun & Choi, San, 2018. "Ten years of research change using Google Trends: From the perspective of big data utilizations and applications," Technological Forecasting and Social Change, Elsevier, vol. 130(C), pages 69-87.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Jun, Seung-Pyo & Park, Do-Hyung, 2016. "Consumer information search behavior and purchasing decisions: Empirical evidence from Korea," Technological Forecasting and Social Change, Elsevier, vol. 107(C), pages 97-111.
    2. Jun, Seung-Pyo & Sung, Tae-Eung & Park, Hyun-Woo, 2017. "Forecasting by analogy using the web search traffic," Technological Forecasting and Social Change, Elsevier, vol. 115(C), pages 37-51.
    3. Jun, Seung-Pyo & Park, Do-Hyung & Yeom, Jaeho, 2014. "The possibility of using search traffic information to explore consumer product attitudes and forecast consumer preference," Technological Forecasting and Social Change, Elsevier, vol. 86(C), pages 237-253.
    4. Jun, Seung-Pyo & Yoo, Hyoung Sun & Choi, San, 2018. "Ten years of research change using Google Trends: From the perspective of big data utilizations and applications," Technological Forecasting and Social Change, Elsevier, vol. 130(C), pages 69-87.
    5. Hulya Bakirtas & Vildan Gulpinar Demirci, 2022. "Can Google Trends data provide information on consumer’s perception regarding hotel brands?," Information Technology & Tourism, Springer, vol. 24(1), pages 57-83, March.
    6. Jun, Seung-Pyo & Yoo, Hyoung Sun & Lee, Jae-Seong, 2021. "The impact of the pandemic declaration on public awareness and behavior: Focusing on COVID-19 google searches," Technological Forecasting and Social Change, Elsevier, vol. 166(C).
    7. Malyy, Maksim & Tekic, Zeljko & Podladchikova, Tatiana, 2021. "The value of big data for analyzing growth dynamics of technology-based new ventures," Technological Forecasting and Social Change, Elsevier, vol. 169(C).
    8. Whistance, Jarrett & Thompson, Wyatt, 2014. "The role of CAFE standards and alternative-fuel vehicle production credits in U.S. biofuels markets," Energy Policy, Elsevier, vol. 74(C), pages 147-157.
    9. Sallee, James M. & Slemrod, Joel, 2012. "Car notches: Strategic automaker responses to fuel economy policy," Journal of Public Economics, Elsevier, vol. 96(11), pages 981-999.
    10. James M. Sallee, 2014. "Rational Inattention and Energy Efficiency," Journal of Law and Economics, University of Chicago Press, vol. 57(3), pages 781-820.
    11. Zirogiannis, Nikolaos & Duncan, Denvil & Carley, Sanya & Siddiki, Saba & Graham, John D., 2019. "The effect of CAFE standards on vehicle sales projections: A Total Cost of Ownership approach," Transport Policy, Elsevier, vol. 75(C), pages 70-87.
    12. Gallagher, Kelly Sims & Muehlegger, Erich, 2011. "Giving green to get green? Incentives and consumer adoption of hybrid vehicle technology," Journal of Environmental Economics and Management, Elsevier, vol. 61(1), pages 1-15, January.
    13. Jukka Ruohonen & Sami Hyrynsalmi, 2017. "Evaluating the use of internet search volumes for time series modeling of sales in the video game industry," Electronic Markets, Springer;IIM University of St. Gallen, vol. 27(4), pages 351-370, November.
    14. Dedehayir, Ozgur & Steinert, Martin, 2016. "The hype cycle model: A review and future directions," Technological Forecasting and Social Change, Elsevier, vol. 108(C), pages 28-41.
    15. James M. Sallee, 2011. "The Taxation of Fuel Economy," Tax Policy and the Economy, University of Chicago Press, vol. 25(1), pages 1-38.
    16. Al-Alawi, Baha M. & Bradley, Thomas H., 2014. "Analysis of corporate average fuel economy regulation compliance scenarios inclusive of plug in hybrid vehicles," Applied Energy, Elsevier, vol. 113(C), pages 1323-1337.
    17. Skeete, Jean-Paul, 2017. "Examining the role of policy design and policy interaction in EU automotive emissions performance gaps," Energy Policy, Elsevier, vol. 104(C), pages 373-381.
    18. Malina, Christiane, 2016. "The environmental impact of vehicle circulation tax reform in Germany," CAWM Discussion Papers 86, University of Münster, Münster Center for Economic Policy (MEP).
    19. Ying Liu & Yibing Chen & Sheng Wu & Geng Peng & Benfu Lv, 2015. "Composite leading search index: a preprocessing method of internet search data for stock trends prediction," Annals of Operations Research, Springer, vol. 234(1), pages 77-94, November.
    20. Greene, David L. & Evans, David H. & Hiestand, John, 2013. "Survey evidence on the willingness of U.S. consumers to pay for automotive fuel economy," Energy Policy, Elsevier, vol. 61(C), pages 1539-1550.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:enepol:v:91:y:2016:i:c:p:148-160. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/enpol .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.